Abu Dhabi real estate giant Aldar is parading its completed and upcoming projects on Yas Island during Dubai’s Arabian Travel Market 2011.

Future projects on the Abu Dhabi island include major retail complex Yas Mall and Yas Water Park, which are both scheduled for completion in 2013.

Yas Island has already made steps towards becoming a major retail destination with the completion of the largest IKEA store in the MENA region, which opened its doors in March 2011.

Projects that were launched on the island in 2010 include Ferrari World Abu Dhabi – the world’s largest indoor theme park – as well as Yas Links Golf Course and The Yas Yacht Club, a dining and nightlife destination.

Mohamed Al Mubarak, deputy chief executive officer and chief commercial officer, Aldar Properties, commented, “It is great to be returning to Arabian Travel Market to showcase the further developments at Yas Island and explore collaboration opportunities with the wider tourism industry.”

He continued, “Over the past two years, a range of exciting new attractions have allowed Yas Island to establish itself as a destination catering to a diverse variety of visitors from business travellers to family leisure visitors.”

Arabian Travel Market 2011 runs from 2-5 May 2011 at the Dubai International Convention & Exhibition Centre.

Aldar, Abu Dhabi’s real estate development and management company, is set to bring Yas Island, Abu Dhabi’s major destination for business and leisure travellers to Arabian Travel Market, the leading travel exhibition for the Middle East region that starts tomorrow in Dubai.

Since November 2009, when it welcomed the public ahead of the first Formula 1 Etihad Airways Abu Dhabi Grand Prix, Yas Island has evolved into a major business and leisure hub. Located between Abu Dhabi and Dubai, and just 10 minutes from Abu Dhabi International Airport, Yas Island has a wide range of hotels and attractions to cater for all travellers.

The Yas Hotel has developed its reputation as one of the most iconic five star hotels in Abu Dhabi, and has welcomed high-level governmental meetings, awards ceremonies and corporate conferences. The profile of the hotel has blossomed inside and outside the GCC, culminating in the award of the “World’s Best New Hotel” at the World Travel Awards in London in November 2010.

Six other hotels on Yas Island offering 1,800 rooms and conferencing facilities have been developed around a plaza close to the Yas Marina Circuit. The hotels are owned byAldar and operated by global brands IHG (Crowne Plaza and Staybridge Suites), Rezidor (Radisson Blu and Park Inn) and leading regional operator Rotana (Rotana and Centro).

Last year also saw the launch of a number of new destinations to great acclaim

• Opened in the summer of 2010, Yas Links Golf Course, the first true links in the region, has further strengthened Abu Dhabi’s position as a major golf tourism destination. It was also decorated with the coveted Best Golf Course and Best Club accolades by Middle East Golfer, the region’s leading consumer golf magazine, in its 2010 awards.

• Ferrari World Abu Dhabi opened in November 2010, becoming the world’s largest indoor theme park and the first ever Ferrari theme park in the world. The park hosts over more than 20 Ferrari-inspired rides and attractions for the entire family including the world’s fastest roller coaster and the region’s first duelling coaster.

• The Yas Yacht Club is now open and has become a vibrant entertainment destination with Cipriani, Stars’n'Bars and Allure nightclub all proving to be a welcome addition to Abu Dhabi’s dining and nightlife options.

Yas Island has also played host to diverse range of international and regional artists such as Eric Clapton, DJ Tiesto, Stevie Wonder, Shakira and AmrDiab during its Show Weekends and a full programme of year-round cultural and sporting events are now in place.

Looking ahead, Yas Island is set to become a major retail destination for the UAE. The largest IKEA store in the MENA region opened in March, and Yas Mall, a super regional Mall is set for completion in Q3 2013. In addition, an exciting new water park concept is also scheduled for completion on Yas Island in 2013.

Mohamed Al Mubarak, Deputy Chief Executive Officer and Chief Commercial Officer, Aldar Properties, commented, “It is great to be returning to Arabian Travel Market to showcase the further developments at Yas Island and explore collaboration opportunities with the wider tourism industry. Over the past two years, a range of exciting new attractions have allowed Yas Island to establish itself as a destination catering to a diverse variety of visitors from business travellers to family leisure visitors.”

This Formula One car may lack the horsepower, speed and size of the real thing but the miniature model still proved to be a winner on the track.

The gas-powered balsa wood F1 car sped down a 20-metre straight course yesterday to claim first place in the national finals of the F1 in Schools competition.

The model was designed and raced by Team Red Shift, who won the national finals last year. They will head to Malaysia in September to represent the UAE in the world championship.

Dominic Palubiski, 17, and his five teammates from Dubai College beat 10 other teams to win the competition at Yas Marina Circuit. Revolution Racing, also from Dubai College, finished second.

Pupils between nine and 19 were challenged to develop their own F1 team. As well as design and build their car, they also had to make a presentation to a panel of judges.

Dominic’s teammates – Mustafa Shaikh, 16, Louisa Henson, 17, Gina Steel, 17, Rahul Dungarwal, 17, and Shounak Das, 17 – all had individual roles including branding and finance. They will need to raise Dh100,000 in sponsorship money to help them get to Malaysia.

Louisa said Team Red Shift had already raised Dh14,000 to reach the national finals. “We will have to meet with sponsors and sell our team,” she said.

During the next months, Team Red Shift will be e-mailing, phoning and meeting with banks, airlines and anyone else who might sponsor them.

Richard Cregan, the chief executive of Yas Marina Circuit, who was Toyota’s F1 team principal, said the competition was as close as children could get to the sport.

“If you see what effort these kids put into building these cars and working on their reaction times, this is very close to racing and competing. It’s as close as they will get to F1 without the real thing,” he said.

Mr Cregan said the children were at a better advantage now than most Formula One drivers.

“They can very often be more open to learning in this kind of situation than an F1 driver. They might have quicker reaction times than F1 drivers and they don’t have any mental block as to why they should be quick,” he said.

Mr Cregan noted there had been a rise in the level of competition this year, considering it was only the second time the Circuit had hosted the event. In 2009, the competition was held at Dubai Autodrome.

“After the results and the quality of the competition last year, they will certainly be watching what’s coming out of the UAE this year,” he said.

Dominic said he was pleased with the performance of the team’s car, but would spend the next few months working on strategy. “We will make it better,” he said.

Work for the 2011 finals began last September for Revolution Racing, which will be paired with a Malaysian team in the finals. The trio – Vansh Dassani, 15, Kashyap Sajnani, 16, and Saniya Mediratta, 16 – experienced a steep learning curve. “Some products didn’t deliver on time,” said Saniya. “Our wheels were three times their original weight and the day before the competition we had to go back to the manufacturer to get them made again.”

They also had to paint their own car, which is usually a specialist job. Weight is important and a car needs the right number of paint layers.

“The company that was going to paint it said it would take five days. Because the car was delivered late, we couldn’t wait to do this,” Saniya said.

Revolution Racing are looking forward to working with their Malaysian counterparts. “We had the fastest car, and they might have the best pit display,” Kashyap said.

Abu Dhabi-based developer Aldar Properties feels that a more optimistic buyer market is emerging in the region.

Yas Marina

“With residents now well settled into Al Bandar, the first community to be delivered at the new Al Raha Beach project, there is now only a small percentage of the apartments still available for purchase,” says the company.

Speaking to OPP this week, Rami Nasser, Aldar Director of Sales & Commercial Leasing, said “we are seeing a more optimistic outlook from purchasers as Al Zeina and Al Muneera move towards their openings later this year.”

“With Al Bandar next door completed more than 6 months ago, and with the attractions of Yas Island only minutes away, people are expressing more interest in these communities.”

And, as if to emphasise the point, when the company recently launched 75 villas and 12 apartments for sale at its Al Bateen Park scheme on Abu Dhabi Island, “things were brisk with the majority being sold on the first day,” says the company.

“It is particularly heartening to see an increase in interest from potential purchasers across the property range,” adds Nasser.

The huge red dome emblazoned with the largest Ferrari logo in the world is proving to be the latest tourist beacon for GCC visitors to the UAE.

Since it opened on 4 November 2010, Ferrari World Abu Dhabi – the world’s largest indoor theme park and only Ferrari Park in the world – is quickly becoming a must-visit destination on every regional tourist’s itinerary.

“In our first few months of operation we have seen a huge influx of regional tourists, from Kuwait, Saudi, Oman, Bahrain and Qatar. We generally see a spike in visitor numbers – especially families – over the weekend and during key holiday periods,” said Andy Keeling, Park Manager of Ferrari World Abu Dhabi. “The Park is a first for the region in many ways, with technologically advanced attractions and the unique appeal of an indoor venue. In addition, the twin draws of a prestigious sports car brand and an exciting family-friendly destination makes Ferrari World Abu Dhabi a compelling experience for regional visitors,” he added.

The theme park brings together more than 20 Ferrari inspired rides and attractions, all of which incorporate impressive Ferrari design and technology, in one spectacularly designed air-conditioned space.

“This is a new idea for the Middle East. It is awesome and it’s nearby. I will return for sure, again and again,” said one Bahraini visitor, Tamim, during his visit to the Park.

Racing attractions such as the state-of-the-art simulators at Scuderia Challenge, which allow visitors to speed around the virtual Yas Marina Circuit, as well as Fiorano GT Challenge, which recreates competitive drag racing between guests, rate the most popular at Ferrari World Abu Dhabi among adult GCC visitors.

The spine-chilling 62-metre drop of G-Force and the park’s most talked about ride, Formula Rossa – the fastest rollercoaster in the world, that clocks an acceleration speed of 0 to 240 kmph in 4.9 seconds – are other top picks.

“The roller coaster Formula Rossa and the Fiorano GT challenge were my favourites,” said Ahmed al-Sulaiti from Qatar, while Kuwaiti visitor Abdullah Ali added: “The collection of cars inside Galleria Ferrari and the cars all around the park are awesome. The overall concept and construction is a wonderful idea.”

According to Keeling, GCC families with younger children were amongst the Park’s biggest fans. “Families who visit are amazed at the number of kid-friendly attractions. Many are drawn here by the destination’s landmark status but they leave realising that Ferrari World Abu Dhabi is without doubt the Middle East’s premier family entertainment centre. There’s something for everyone – thrilling rollercoasters for the teens, a priceless collection of classic Ferraris at Galleria Ferrari for those interested in the brand’s heritage and easy joy-rides such as Bell’Italia for the whole family.”

The technological superiority of many of the rides have also garnered admiration among GCC visitors. From immersive attractions such as Speed of Magic that combines a 4-D journey through fantasy landscapes with the fourth dimension of temperature changes and movement, to the completely interactive Driving with the Champion, which recreates the feeling of being in the passenger seat alongside Fernando Alonso, Scuderia Ferrari F1™ driver.

“The modernity and technology here is unique,” said Mishal, a visitor from Kuwait.

In addition, the unique appeal of attractions such as Paddock and Made in Maranello that let guests get up close and personal with the cars themselves and with the inspiring story behind their creation have also won quite a few fans within the region.

“I really enjoyed Made in Marenello,” said Omani visitor, Omsiyat. “It was great to see and know how the car is made,” he added.

“GCC visitors who come to Ferrari World Abu Dhabi are always impressed and most of them leave the park planning to return the next time they visit the UAE,” said Keeling. “For avid shoppers and memorabilia collectors, there are two signature Ferrari stores at the park and even a Red Glove personal shopper service to help pick out the perfect souvenir to take back home,” Keeling concluded.

Aldar Properties, Abu Dhabi’s biggest developer, posted a loss of AED12.658 billion for 2010 on the back of steep declines in regional property values, despite the continuation of several key projects.

The company’s loss before the impairments linked to so-called ‘fair value’ measurement of property – marked at current market price – stood at AED1.35 billion, against a net gain of AED354.1 million in 2009, a result the company attributes to an increase in the depreciation charge and finance costs for the year.

The write-down in the value of its assets to market prices, which compounded the loss, aimed “to reflect the adverse conditions that have reflected the real estate market in the UAE”.

The company has sought to restructure its debts to get on a firmer financial footing following the decline in market values, which also weighed on half-year results up to June 2010.

In December the company sold Ferarri World, its car themed amusement park, as well as related infrastructure to the government for AED10.9billion, along with an AED5.6billion sale of land and houses.

Aldar’s board also recently approved the issuance of AED2.8 billion in convertible bonds to Mubadala Development Company, a state-backed investor.

Revenue, mainly generated from land and property sales, rents, property investments and other businesses, fell by more than 92% to AED818.4million from AED1.57billion the previous year, although returns from project and asset management services helped the company’s other operational segments rise from AED394.2million to AED964.6million.

Higher depreciation charges helped push up the company’s general expenses by 27%, partly offset by cutting staff costs by a quarter.

But the company completed a number of key projects in and around the UAE capital, including the Yas Links Golf Course. Al Bandar and Al Gurm projects were also handed over to owners, and it plans to complete projects in Al Muneera and Al Zeina this year. The value of its development work in progress rose 27% for the year to AED13.8billion against the total value in 2009.

Ahmed Al Sayegh, Aldar chairman, said the commitment to complete projects would have “a positive long term impact for Abu Dhabi”.

“We have also put in place new financial framework, focused on strengthening the capital structure and ensuring the business has a sustainable future,” he said.

The company’s shares have steadily decreased in value since April, reaching their lowest level on record on at the end of January at AED1.65. Yesterday the shares closed down 3.2% to AED1.8 on news of the company’s losses for the year.

The restructuring of Aldar, Abu Dhabi’s biggest developer, would not affect its relationship with MEP contractor Voltas, which has executed major Aldar projects such as Ferrari World on Yas Island, and is currently working on the Central Market development.

Voltas Limited executive VP and COO Shaukat Ali Mir.

“They have been very positively supporting us. There is a great relationship. We consider Aldar as one of our key customers. We are certain that they will restructure themselves well; they have the government supporting them. It is a great model, and we look forward to doing a lot more work with Aldar,” said Voltas executive VP and COO Shaukat Ali Mir.

Mir pointed to the company’s ongoing relationship with Aldar, which has ranged from the Formula One racetrack to Ferrari World and Central Market at present, due for completion “by the middle of next year,” he said.

“Aldar has just announced other Yas Island projects, such as a shopping mall and waterpark, and we look forward to bidding on all these projects as well. The tenders are all due to be submitted by February, so the award should take place by April or May.

“Aldar’s current restructuring will not hamper in any way the plans they have for their new developments. They have huge support from the government. Most of these real-estate companies, be they private or public, have all been affected by the downturn.

“I suppose it is a question of reorganisation. Aldar is one of the key real-estate companies in Abu Dhabi, and I think they will survive and do very well, in my personal opinion,” said Mir.

Meaning is everything when it comes to branding in today’s consumer obsessed markets.

Aldar translates as ‘home’ in English, Emaar is ‘constructing’, while Nakheel means ‘palm trees’. Aldar’s new brand is less about bricks and mortar and more about customer experience. Delores Johnson / The National

UAE developers’ names are a case in point: Aldar translates as “the home” in English. Emaar is “constructing”, Nakheel means “palm trees”, while Sorouh is the Arabic for “edifices”.

Simple concepts, perhaps. But after the global economic crisis and UAE property slowdown, a more complex question beckons: how do these brands really translate in a wary and uncertain consumer market?

Not particularly well, according to research by Brand Finance, a leading independent valuation consultancy. In the company’s annual survey of the top 50 Gulf companies, the brand equity of the biggest regional developers has declined this year.

Abu Dhabi’s Aldar saw a 75 per cent drop in its brand value this year compared with last year.

Part of the problem with property brands is that they are rooted in the “off-plan” model of sales, says John Brash, the founder and chief executive of Brash Brands, an agency based in Dubai.

“When it was a boom, no one really cared about the end users … it wasn’t their main priority,” Mr Brash says. “As long as you have investors, you’ve got your money. It just became about square footage and costs.”

But some developers, through necessity, are now treating their customers differently. This comes through the realisation that instead of “flipping” property – the practice of investors reselling units for a quick profit – their core customers are now more interested in living in them.

The recent rebranding of Aldar reflects this concept. Last month, the company announced a change of logo and a shift in its business to emphasise the “human” aspects of its developments.

Aldar’s portfolio includes residential and commercial property, plus retail, leisure, education and health developments.

To reflect this, the corporate identity will be realigned based on six “brand experiences” the company aims to deliver to its customers. These are, it says: “creating communities; injecting excitement into life; indulging in the best life has to offer; taking time for yourself; creating ­inspiring working environments; and enjoying spontaneous activities”.

The branding work was done by Wolff Olins, the international agency that created the logo for the London 2012 Olympics.

Some branding experts say Aldar’s new identity is reminiscent of the London Olympics visuals. “The brand identity is distinctive but does remind us all of the Olympic 2012 identity, which funnily enough was designed by the same agency,” says Hermann Behrens, the chief executive of The Brand Union Middle East, a consultancy based in Dubai.
For Aldar, sleek images of developments complete with aspirational slogans have made way for branding messages more focused on the experience of day-to-day life.

Charles Wright, the managing director of Wolff Olins Dubai and the lead strategist on the Aldar rebrand, says the new approach is about more than a logo.

“Putting a fancy logo on a property really makes no difference at all. You’re not going to be fooled by something superficial,” Mr Wright says.

Aldar’s new brand is less about bricks and mortar and more about what happens outside the four walls of construction.

“In a simple sense, it was to make less emphasis on building towers and to shift the emphasis on to providing experiences to consumers,” says Mr Wright.

“The convention of real estate in this region is still bricks and mortar. It’s a hangover from the days when you could sell virtually everything off-plan.

“The new emphasis is on the practical, day-to-day things. [It’s] stuff like car parking. That’s a very small example but it’s the kind of thing that, day in day out, becomes a real pain in the neck.

“You need things like doctors, mosques, schools and shops … because those are the things that make it possible to lead a normal family life.”

Marie Clark, an account director at Wolff Olins who worked on the Aldar account, says some other property developers have overlooked these mundane but important aspects of life.

“In some places, they create these developments that don’t even have a supermarket. That’s creating a community that is very transient,” Ms Clark says.

Ashley Dymoke, Aldar’s brand manager, describes the change as “a shift to a more customer centred focus, as Aldar is no longer just a property developer”.

“It’s not just a question of changing the look of Aldar. It has to change from the internal processes and what we do,” Mr Dymoke says.

As part of this, all direct Aldar employees were invited to a presentation about the new brand. This included everyone “from PAs right the way up to the CEOs”, he says. “We very much wanted to involve our staff, so they really felt part of the brand.”

Mr Brash says Aldar’s position is not unprecedented in the region. He points to the Dubai developer Emaar, one of his clients, as having pioneered such an approach in the UAE.

Mr Brash says Emaar’s malls, education, healthcare and hospitality divisions represent exactly what Aldar is trying to achieve.

“Emaar’s positioning from day one has been integrated lifestyle communities. Emaar was really the pioneer.”

But they have no choice. As Mr Wright says, the key question for all property companies is “how they will restore confidence in people to invest in property”.

In a difficult market, property companies must stand for more in the eyes of their customers.

GCC property firms’ brand values suffer

Four of the five property companies in the GCC saw the value of their brand decline this year. According to the Brand Finance’s annual list of the top 50 GCC brands, Aldar’s brand is worth US$185 million (Dh679.44m), down from $734m last year.

Gautam Sen Gupta, the managing director of Brand Finance Middle East, says the company calculated brand value using a number of scores, including brand awareness, brand heritage and marketing spend. “Brand is what determines the longevity of a company,” he says. The higher the brand’s value as a percentage of the business, the better, Mr Gupta says.

A higher brand value can result in increased customer loyalty, enabling the company to charge premium prices and attract new clients from competitors, he says.

In the Brand Finance Middle East list, Emirates Airline ranked as the number one brand in the GCC, with a brand value of $3.5bn.

There are no property companies in the top 20. Emaar, which was ranked the 13th last year, is 26th this year. Aldar went from the 10th top brand last year to the 46th this year.

bflanagan@thenational.ae

The new Ferrari World theme park could boost real estate prices on Abu Dhabi’s Yas Island by as much as 25 percent, real estate agents and analysts told Arabian Business.

“Ferrari World is certainly going to impact Abu Dhabi’s property market in that the areas surrounding Yas Island such as Al Raha Beach and others will attract more visitors enabling these new communities to receive greater attention,” Loshini Lawrence, operations manager at the Better Homes real estate agency in Abu Dhabi told Arabian Business.

“Property in these popular locations will no doubt appreciate in time, especially once the communities are fully-developed,” he said.

Lawrence believes that, depending on the location, the impact on prices for properties close to the world’s first Ferrari-branded theme park could be “at least 20 to 25 percent higher than similar properties that do not offer the same.”

However, Jesse Downs, director of research and advisory at Landmark Advisory, was slightly more conservative about the short-term impact the park would have but believed the unique attraction would have a positive influence in the medium to long term.

“Based on our analysis, the opening of Ferrari World is not expected to have a short term impact on sale prices and sales volumes or rents and rental volumes. Assuming development plans proceed as expected, we could foresee a premium emerging in the medium to long term.”

The Ferrari-branded 200,000 square metre attraction, which was unveiled to the world’s media on Wednesday at Yas Island, will be the world’s largest indoor theme park and will contain around twenty rides, including the world’s fastest rollercoaster, the region’s first dueling roller coaster and a 4-D experience called ‘Speed of Magic’.